Investor Presentation June 2020
Disclaimer This presentation and the information contained therein (herein referred to as the “Document”) have been prepared by Banque Internationale à Luxembourg S.A. (herein referred to as “BIL”), a Luxembourg bank licensed and supervised by the CSSF (the Luxembourg Commission de Surveillance du Secteur Financier) and the ECB (European Central Bank). It has been produced for information purposes only and may not be complete. This Document cannot be construed as investment advice as it has been prepared without regard to the individual financial and other circumstances of persons who receive it. This Document does not constitute an offer to sell or the solicitation to buy any securities issued by BIL or any entity of the BIL group and does not constitute a public offer under any applicable legislation. In particular, this Document is not an offer to sell or the solicitation of an offer to purchase securities in the United States. Securities may not be sold in the United States absent registration or an exemption from registration under the U.S. Securities Act of 1933, as amended. This Document may include future expectation and/or forward-looking statements and assumptions related to the possible evolutions of business environment. By their very nature, statements contained in this Document involve inherent risks and uncertainties, both general and specific, and risks exist that predictions, forecasts, projections and other forward-looking statements will not be achieved. We caution readers not to place undue reliance on these statements as a number of important factors could cause our actual results to differ materially from the beliefs, plans, objectives, expectations, anticipations, estimates and intentions expressed in such statements. Such important factors may include, but are not limited to, general economic conditions, general competitive factors, changes in the availability or costs of liquidity, general market conditions, changes in laws and regulations (including accounting principles), changes in the policies of regulatory authorities, changes in interest rates and/or exchange rates, and other factors not specified herein. In any event, such forward- looking statements speak only as of the date on which they are made, and BIL does not undertake any obligation to update or revise such statements as a result of new information, future events or otherwise. BIL makes every effort to ensure the contents of this Document have been compiled from sources believed reliable. All opinions, estimates and projections contained in this Document are those of BIL as of the date hereof and are subject to change without notice. BIL or any other entity of BIL’s Group is not liable for any damages that may result from any inaccuracy or incompleteness in/of this information. BIL or any other affiliate of BIL is not liable for any investment decisions of whatever nature, which are in any way based on this Document by the user thereof. This Document or any part of it may not be reproduced, distributed or published without the prior written consent of BIL. 2
Agenda Overview 4 1 Financial Performance 16 2 Asset Quality 19 3 Solvency and Liquidity 23 4 Key takeaways 27 5 Appendix 29 6 Note: Any reference to 2019 figures presented in this document shall be understood as 2019 full year figures, unless otherwise specified 3
Overview
Overview Key milestones of the Oldest Bank in Luxembourg 1963 1856 1970 1985 2000 BIL was underwriter of the Banque Internationale à BIL is one of the founding The Bank commenced its The Bank commenced its first eurobond listed on the Luxembourg , the first public members of CEDEL, which private banking activities in private banking activities in Luxembourg Stock Exchange limited bank in the country, grew to become the clearing Switzerland Denmark undertook its first issues of firm Clearstream banknotes International 2015 2012 2018 2019 & 2020 Merger of the private banking Precision Capital and The Legend Holdings acquires Developments of BIL business of KBL (Switzerland) Grand Duchy of Luxembourg Precision Capital’s stake in activities in Hong Kong and into BIL Switzerland bought BIL from Dexia BIL China 5
Overview Building great companies BIL acquisition Legend Holdings Shareholding as at December 2019⁴ • • On July 2, 2018, Legend Holdings Corp. closed the Legend Holdings is an investment holding group 0.022% transaction for the acquisition of Precision Capital’s headquartered in Beijing, China, and listed on the 89.936% stake in BIL 1 Hong Kong Stock Exchange since June 2015 9.998% • • The Grand Duchy of Luxembourg remains an As at 31 December 2019, Legend Holdings had important shareholder in BIL with its 9.99% stake assets of EUR 79.85 billion 2 , annual revenues of EUR 50.42 billion 3 and close to 87,000 employees • Legend Holdings considers BIL as a long-term worldwide strategic investment • Legend Holdings founded Lenovo and developed it • Legend Holdings intends to maintain and invest into a global leader following Lenovo’s acquisition of further in the development of the BIL brand, in IBM’s global PC business in 2004 89.980% Luxembourg, Europe and internationally • Legend Holdings has over a 35-year history of • BIL governance and management has remained continued growth and expansion unchanged (see Appendix) Legend Holdings • Legend Holdings is rated AAA in China (United The Grand Duchy of Luxembourg Credit Ratings Company Limited) Public (1): Please refer to BIL press release dated July 2, 2018 : “Legend Holdings receives regulatory approval for the acquisitio n o f Banque Internationale à Luxembourg” (4): after capital increase on December 16, 2019 of EUR 58 million (2): Based on EUR/CNY of 0.12795 as at December 31, 2019; (3): Based on 2019 average EUR/CNY of 0.12954 6
Overview Legend Holdings’ Investment Portfolio with Sustainable Long -Term Growth Legend Holdings Financial investments Strategic investments Investissements stratégiques urs Investissements financiers Angel investments Agriculture Innovative IT Financial Services and food Consumption and • High-tech incubation & start-ups Services e.g. artificial intelligence, machine learning, big data, gene technology Venture capital • Early stage and innovation e.g. smart electric drive and driver assistance systems, internet, big Kaola Technology data, fintech ✓ Significant or controlling shareholder Private equity ✓ Long-term shareholder ✓ Provide value-added services • Growth capital and cross-border ✓ Build leading companies in target investments in various sectors industries Note: Major but not all portfolio companies are listed as of December 31, 2019 7
Overview Building great companies ➢ ➢ Profitable business : BIL’s asset Long-term investment horizon and scale, profit and revenue growth capital support Legend offers potential and business stability advantages as a ➢ Access to China : business ➢ shareholder BIL’s long history and deep roots in opportunities for BIL with Chinese Luxembourg companies and individuals overseas ➢ A well-run bank with a diversified Rationale for ➢ business mix and a focused, long- Potential business synergies with Legend’s strategic term strategy other companies in Legend’s investment in BIL portfolio ➢ A well-capitalised bank with strong ➢ corporate governance and risk Experience and network in artificial management intelligence, internet, big data and financial technology, etc. Synergies started in November 2018, BIL launched a private equity fund called BIL PE I, whose objective is to provide shareholders with long-term capital appreciation via diversified investments in three private equity funds managed by Legend Capital and each mainly targeting China. BIL Suisse won a Wealth Briefing Swiss Award 2020 for “Best Client Initiative” with judges impressed by the BIL PE I private equity fund. 8
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